The Australian share market may be in for a flat or slightly higher start this morning after Wall St closed modestly higher overnight.
US stocks traded in the red for most of the session, rising in the last hour to finish in the black.
In economic news out of the US on Thursday: The Labor Department reported that 450,000 Americans filed for first-time unemployment benefits last week. Economists had expected a figure around 460,000.
Also out before the closing bell, the producer price index, which showed a rise of 0.4% in August following a 0.2% rise in July.
RealtyTrac said that the number of homeowners behind on their loans dropped 30% in August.
And the Philadelphia Fed Index, a read on regional manufacturing activity, contracted in September, but only slightly, on a fall in new orders.
On Thursday, the Dow Jones Industrial Average closed 22 points higher at 10,595. The S&P 500 Index is flat at 1,125 and the NASDAQ is up 2 at 2,303.
European stocks were lower: London’s FTSE fell 15 points, Paris is down 19 and Frankfurt lost 12.
Asian markets were also weaker on Thursday: Hong Kong’s Hang Seng was 34 points lower, Tokyo’s Nikkei slipped 7 points and China’s Shanghai Composite dropped 50.
The Australian share market finished lower yesterday. The S&P/ASX 200 Index closed 56 points weaker at 4,605 and on the futures market the SPI200 is up 24 points. Turning to currencies and the Aussie Dollar at 7:50AM was buying 93.68 US cents, 59.97 Pence Sterling, 80.38 Yen and 71.63 Euro cents.
In business news: Shares in Conquest Mining Ltd (ASX:CQT) rose 15.73% to $0.515 on Thursday. The gold miner has signed its first offtake agreement for its flagship Mt Carlton mine with one of China’s largest gold smelters, Shandong Guoda Gold. The company says sales revenue under the life-of-mine contract is projected to be around $1 billion. Conquest also announced yesterday that it has acquired a 40% stake in the Pajingo mine in northern Queensland from Heemskirk Consolidated in a cash and scrip deal. North Queensland Metals, who owns the other 60% interest in the project, has rejected Conquests takeover advances. Conquest Mining booked a loss for the half year to December 31, 2009.
Shares in Karoon Gas Australia Ltd (ASX:KAR) were in a trading halt yesterday and last traded at $7.85. The company says it has successfully raised $186.4 million via a share placement to institutional investors. The energy explorer says it placed 26.6 million shares to sophisticated and professional investors at $7 a share. Karoon says the capital raising will provide the company with a strong cash position for its continued exploration and appraisal program in the Browse Basin, exploration in Brazil and Peru and general working capital. Karoon Gas Australia reported a loss for the six months to December 31, 2009.
To ex-dividends, and going ex-dividend today we have Austal with a 6 cent fully franked dividend, Challenger Financial Services with an 8.5 cent unfranked dividend and RCR Tomlinson with a 3 cent fully franked dividend.
To commodities: and the price of gold added US$5.20 to $1271 for the September contract on Comex, silver is up $0.20 to $20.74 and copper is up $0.03 at $3.48 a pound.
The price of oil is down $1.45 to US$74.57 a barrel for October light crude in New York.
